Glencore Says Xstrata Is 'Not a Must-Do Deal'

8/21/2012 8:05AM

Commodities titan Glencore International is willing to walk away from its proposed merger of equals with Xstrata PLC as it continues to wrangle with some of Xstrata's largest shareholders about what is the right value for the deal. Dow Jones's James Herron reports. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... these clinical ... stall was always a ... difficult one ... but now some analysts are warning that it actually happens all ... Jamestown has been falling the ins and outs of the ups and downs of the negotiations ... James I mean it's all to do with ... the share price ... Glencore has offered a stock is right what is there a share of the of the men shed his imaginative equals but Blanco is offering two point eight of age as it stands ... for next off Sara ... and its Russian us a sense of the the cuts are a sovereign wealth fund said this isn't enough they won ... three point two five ... languages OK which ... did ... this for awhile why is everything changed ... over the last twenty four hours ... while Glencore appears to be hardening its leadership position effectively ... I it's Friday reports its first-half earnings today ... though BATS than expected and the couple aspects of the inning sticking to ... the strong performance and Glencore's marketing division which is one of the key things brings to this message are ... we to give it a couple much to say whoa look two point eight is a good ratio ... I'm sad to see its takeways and the extent that ... he hasn't had a convincing argument from best is an extract as to why he should ... increase this oh ... so what's the next that I get is a vote on the set September seven as against us with athletics office elders decide whether to accept ... the deal from the call ... but how many people out what books a book on the shoulders at the pics talk to me to actually ... say yes but it's the ... well um the sun is on quite a decision with the bacon bacon bought them in but it's still very much up in the app analysts in particular the saying that ... that this is the isthe less than fifty fifty chance that this will will succeed ... ok does that mean that if the vote doesn't see that at some stage ... we'll give it what you think this is a negotiating tactic or easy reading they hobble a walkway from the deal ... it's been so out of negotiations or negotiation is only avenue econ say ... but Sesame uses days willing to effectively walk away from the deal but he left the out of the option of money could come back ... at some point in the chair and again I was saying that ... in a way that might be a little bit easier the much more classy about the body of the stocks of this is the by line Cougars is a lot of turmoil in the commodities industry right now ... Wednesday's prices of a bullet aisle on says indeed this is this if the two did ... in the fourth largest mining ... but my come up with a couple sixty six billion dollars the big ... it ... is to be a massive change for the whole causes in this view ... it certainly would be Edmunds who knows what impact it might happen is you know there's been this long trend of ... commodities giants mining giants getting bigger and bigger BHP in the tummy intends has said ... it would still be much of that trend within the industry the question is